Drawbacks




eCommerce has specific risks that should be considered.
Appropriate actions can be taken to minimise the possibility of detrimental effects to your business.



Reliability
Computer hardware and telecommunications are susceptible to failure. Ensure that you have manual processes as a fall back should your online systems be unavailable.
Example: Your business might send out an important email which is not received, leading to expensive errors; while these circumstances are unusual do not assume that critical emails are received successfully.

Security
It is possible to intercept Internet traffic and access the details. Consideration should be given to sending sensitive information such as credit card details via email unless it is encrypted. Also avoid storing sensitive information such as customer account details on your website without encryption and appropriate protection from intrusion. Seek professional assistance when necessary.

Fraud
The more you use the Internet, the more you appreciate its convenience and access to services like banking and shopping. Unfortunately, the Internet also gets exploited for frauds that can sometimes look surprisingly genuine. Impact on business processes.
Using the Internet as a part of your business operations will have an impact on your existing business processes, structures and organisation. Plan for these changes as part of your eCommerce implementation.

Exposing market intelligence and intellectual property
A wide range of people are likely to visit your website including your competitors. If you wish to publish sensitive information for your clients or partners, consider developing an extranet - a secure section of the site that is password protected. If you're considering constant online access by people at external locations, you may consider a virtual private network (VPN). Over-capitalisation.
The process of getting your business online is likely to incur the expenses of hardware, software, systems installation, training, support and Internet connection in addition the costs of development and hosting if you create your own website or eCommerce system.
  • During your planning phase consider your return on investment by comparing these costs with the potential benefits your business will gain.

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